They teach you this stuff at technical analysis kindergarten.
Buy support.
Sell resistance.
Of course, in the real world, with our primitive monkey brains, implementing this into a trading system is easier said than done. Just take a look at the squeeze you’re seeing in real-time in all these beaten-up growth stocks.
The permabears started shorting these names in droves when they’d already slumped into 90% drawdowns.
Talk about a reckless strategy…